Will Dow jones go up or down............??
U.S Dollar become stronger or not????????
2007-06-13 07:22:31 · 2 answers · asked by Raj m 1 in Business & Finance ➔ Investing
Federal thinking inflation is not too high......
2007-06-13 07:34:16 · update #1
Because it is not the only factor, the answer is no one knows. Rate decreases tend to increase stock prices and reduce the value of the dollar, but it also depends upon why the rate changed. It can and does have the opposite effects.
2007-06-13 07:26:56 · answer #1 · answered by OPM 7 · 0⤊ 0⤋
If the Fed cuts the interest rate....
The Dow will most likely go up (the thought is that the cost of borrowing for companies will go down and profits will go up because of it).
The US dollar will become weaker (there will be more dollars in circulation because of lower rates and the demand for the dollar will be less).
Neither case is a given, anything can happen (and usually does).
2007-06-13 14:37:39 · answer #2 · answered by joe s 6 · 0⤊ 0⤋